MRPC News Release
March 3, 2006
For immediate release
For more information, contact:
Bonnie J. Prigge, (573) 265-2993
CITY OF CHAMOIS, OSAGE COUNTY WORKING FOR ENHANCED ENTERPRISE ZONE STATUS
Seven-member board established to develop application, determine target industries and local incentives
CHAMOIS—The city of Chamois and Osage County are working together to establish a new Enhanced Enterprise Zone for an area that includes the city of Chamois and unincorporated areas to the east and south of the city, Mayor Gary Reynolds announced. The area was one of seven within the three-county Gasconade Valley Enterprise Zone area, when GVEZ sought assistance from the Missouri Department of Economic Development to identify potential new zones, meeting the criteria of the new law that was passed in 2004.
With two qualifying areas, the city of Chamois and Osage County appointed seven people to comprise the local board to develop the application, including determining which businesses and industries to target and what local incentives to offer. Serving on that board are Reynolds, Chamois City Clerk Kim Ames, Chamois Superintendent of Schools Tom Allen, Associate Circuit Judge Robert Schollmeyer, Dale Hackmann, Mark Mehmert and Clarence Keilholz.
Based on Census Block Group information, an area must meet certain income, population and unemployment requirements to be eligible for EEZ status. Two areas in the Chamois area actually qualified; the board opted to pursue the one that included land most conducive to development, including property owned by Central Electric Power Cooperative and the Chamois Lions Club.
The area chosen for potential zone designation includes the city of Chamois and the census tract (990100-01) that lies south and east of the city. The proposed zone includes the city of Chamois and is bounded on the west by State Route K, then County Road 318 on the south, then State Route 89, then County Road 274 and State Route Z to the Osage/Gasconade County line. The proposed zone then is bounded on its eastern edge by the Osage/Gasconade County line and on the northern side by the Osage/Calloway county line, which is the Missouri River.
Before the application is completed, a public hearing will be held, and then the local governments involved must pass ordinances approving the incentives, including tax abatements on real property improvements. At that point, the request for designation can be submitted by DED. If all the legislative provisions are met, DED can approve the EEZ.
Local governments must offer qualifying businesses—both new and existing—at least a 50 percent real property tax abatement on new improvements.
“A higher percentage of abatement may be recommended so that the proposed area will be competitive with other parts of the state that are trying to entice development,” said Mayor Reynolds. “We also want to encourage present employers with expansion plans. We know our greatest opportunity for economic growth is with those companies that are already located in the Chamois area, and we want our incentives to help our existing businesses expand and make them even more competitive.”
Retail businesses are not eligible for incentives under the law. State tax credit incentives are also available through the new program but are discretionary, which means DED will determine which companies receive them, and they are limited.
An enterprise zone, because of the incentives it can offer, typically encourages development that otherwise would not occur without the inducement. At times, some taxing entities have opposed the enterprise zone concept, citing a reduction in tax generation. However, in some cases, the new development would not have occurred at all. Therefore, even with the abatement, it can result in an increase in revenue for local governments.
Staff with the Meramec Regional Planning Commission, through a contractual arrangement with GVEZ, has been working with the Chamois group to develop the application.
The public hearing is planned later in March. So far, 12 EEZs have been designated in the state.